Prepaid Wallet License Services

Start Your RBI Payment Wallet License Process Today

The Prepaid Wallet License is issued under strict Payment and Settlement System Regulations, 2008. The RBI regulates all prepaid payment instruments in India. Once issued, the Prepaid Wallet License is valid for one year from the date of issue to the licensee.
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  • Registration of the Pre-Fund Company
  • Advice on Choosing a specific Wallet type
  • Application to RBI
  • Pre-Payment Technology Platform
  • PCI DSS Compatibility
  • Use of AI

Prepaid Wallet License

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To facilitate the transfer of funds and to make it technologically viable, the Reserve Bank of India (“RBI”) has taken a number of steps to make payments faster, which is why it is the first payment wallet license or paid wallet license. The different types of payment fund license are:

  • Bank card or credit card
  • Online wallets
  • Mobile accounts
  • Paper vouchers

These payment services operate under financial regulation and are operated on mobile or credit cards or online. The standard and issuing authority for issuing a Payment wallet license or prepaid payment license is the RBI. The RBI is also responsible for issuing guidelines and rules for prepaid funds.

Payment instruments are instruments that prepare for the purchase of goods and services relative to the retained value of those instruments. Prepaid devices can be issued such as magnetic line cards, smart cards, online accounts, mobile accounts, mobile wallets, and paper vouchers.

There are the following organizations that are eligible to receive a license for prepaid wallets. They have to comply with the following requirements:

Scheduled Banks & Non-banking Financial Institutions:

These institutions have to get previous permission from the Reserve Bank of India (RBI) for getting the license.

New Incorporations:

Those newly formed firms that do not have an audited financial statement must receive a certified Chartered Accountant certificate declaring their current net worth and have to file a provisional balance sheet.

A company holding Foreign Direct Investment/ Foreign Institutional Investment:

As specified by the FDI policy guidelines, these companies must have minimum capital.

All other organizations:

must, in conjunction with their most recent audited balance sheet, have a minimum net worth of INR 25 Crore.

The company incorporated under Companies Act:

A private or public company incorporated under the Companies Act 2013 or 1956 can only do this prepaid wallet issuing business if it is approved in the MOA by its object clause.

  • Only banks and non-bank finance companies which comply with the Capital Adequacy requirement prescribed by the Reserve Bank of India can issue prepaid payment instruments from time to time.

  • An organization incorporated in India and registered under the Companies Act 1956 / Companies Act 2013, with the financial company’s primary purpose.

  • Any financial business looking for payment wallet permission from RBI must have a least positive net-worth of  Rs.5 cr.

  • Prepaid Foreign Currency Payment Instruments: Organizations approved under FEMA to issue prepaid foreign exchange payment instruments shall be exempted from these guidelines. Under the Foreign Exchange Management (Current Account Transactions) Regulations, 2000, as amended from time to time, the use of such payment instruments is limited to acceptable current account transactions and subject to the specified limits.

The RBI has categorized Prepaid or Payment Wallets into four categories:

Closed system payment:

It is a fund issued by a company to a consumer to purchase goods and services only from that company. Example: Amazon, Cleartrip, etc.

You can use this:

  • Receiving a refund to receive and receive a refund
  • You can make a purchase

Open system payment:

It is used to purchase goods and services and also allows for ATM withdrawals. Example – Visa card, Master Card, Rupay card.

You can use this :

  • By withdrawing money from an ATM
  • Payments made for purchases of goods and services by swiping cards
  • Use a PO machine to make a payment

Semi-Closed system payment:

Slightly closed funds refer to those funds that can be used to purchase goods and/or services such as that fund as a payment tool that can be used by a clearly identified merchant who makes a direct agreement with the issuer without a payment instrument. Example- Paytm, Mobikwik, Freecharge etc.

You can use it :

  • Pay to a joint dealer for the purchase of goods
  • Buy from a wallet issuer
  • Transfer money
  • Name of the Entity applicant

  • Constitution of the Entity applicant

  • Address evidence of the company’s registered office

  • Incorporation Certificate

  • A comprehensive report of the company’s core market

  • The company’s projected benefits from the Indian Financial System

  • List of directors and Shareholders’ List

  • Company Legislative Auditor’s Information

  • Quantum of suggested capital

  • Information on fund sources

  • The Company’s recent audited balance sheet

  • Information about the payment system with process flow, infrastructure, protection, and interoperability features

  • Bank account specifics and the company’s bankers


Business incorporation under the Company Act, 2013 with key objects consistent with that of a prepaid payment instrument.


Preparation and filing of the Payment Wallet License Application in Form A with payment of an appropriate fee as needed by the Regulations of the Payment and Settlement System, 2008.


In order to ensure the correctness of the application and the attachments submitted and the fitness of the Company and its promoters and directors, the application thus filed is subject to the initial review of the application by the RBI.


The designated office of the Reserve Bank of India issues an ‘in-principle’ approval valid for 6 months subject to completion of the initial scrutiny to the satisfaction of the RBI.


A Systems Audit Report shall be mandatory to be submitted to RBI by the organization receiving the ‘in-principle’ within those six months, otherwise, the in-principle approval shall be considered to have expired after 6 months. There is a provision for such an applicant to seek a one-time extension of six months, which is to be accepted only if there is a legitimate explanation for the delays incurred. Based on the reasons mentioned, the RBI has the discretion to approve or reject such extension requests.


If the RBI finds that the particulars and facts presented by the applicant in the application are sufficient and, following the respective provisions. The RBI shall issue the Registration Certificate to the applicant within six months of its initial approval. However, in the absence of a certificate of registration, the in-principle approval shall expire at the end of the six months. The registration certificate issued by the RBI is valid for 5 years and is subject to periodic examination.

  • In the event of any takeover or acquisition of ownership of the company, whether or not the same has resulted in a change of management.

  • If there is a shift in the management as a result of which, not including the independent directors, thirty percent of the company’s directors are changed.

  • For those directors who have been re-elected on retirement by alternation, however, prior written approval of the RBI is not necessary.

  • Any company with a primary financial trading purpose wishing to establish payment fund systems will apply for Form A RBI as contemplated under Regulation 3 (2) of the Payment and Residence Regulations, 2008 and a minimum amount of INR 10000 / -.

  • The RBI will review the application in accordance with the Payment and Settlement Systems Regulations, 2008, and look at the management base for input from other regulators, government departments, etc. If the application does not comply with the guidelines, it will be refunded without a refund of the application fee.

  • The certificate will be valid for five years. Five years after applying to the DPSS, the RBI, the Central Office, and the Mumbai office it must be started at least three months before the end of the accreditation certificate.

  • The company needs to maintain the remaining balance as part of the ‘Net Demand and Time Liabilities’ to maintain the resources set out in the Balance Sheet. These balances are calculated using amounts from the bank accounts at the reporting date to the RBI.

  • Only one opening account can be opened with one bank

  • If the entity decides to transfer the login account from one bank to another, it will complete the process within the stipulated time and without affecting the payment cycles

  • The remaining amount as an escrow account will always be equal to or greater than the amount of Prepaid Payment Instruments and payments due to merchants

  • The balance as a balance in the login account can be used to pay for merchant donor institutions and other approved payments

  • Under the permitted categories, all organizations dealing with prepaid payment instruments (PPIs) may issue both reloadable and non-reloadable PPIs

  • The issuer needs to set rules and policies agreed upon by the Board to issue PPIs.

  • A Prepaid Payment Instrument needs to provide the name of the issuing organization along with its brand name.

  • Interest on the amount remaining in the payment instrument shall not be calculated.

  • Entities must have prior authorization to reload the PPI by cash, debit, or credit card on the account.

  • A consumer must perform the due diligence process prior to the issuance of PPI.

  • Cash loading must be limited to 50,000/- per month in the payment instrument.

  • Only the Indian National Rupee Currency must be used for loading and reloading cash into a PPI

  • After the PPI is given, the customer shall be solely liable for each act. The agents shall be solely liable for the omission on their part.

  • Each agency must have in place a Grievance Redressal Process.

  • The PPI license is valid for at least one year from the day it is given to the holder of the PPI. It is the duty of the PPI issuer, within a reasonable period of time, to notify the holders of the expiry of the PPIs by SMS/e-mail/post or other means.

  • The notice concerning the expiry of the PPI shall be issued in the preferred language of the holder, as indicated by the holder at the time of receipt of the PPI. If the PPI expires and the holder does not request the renewal or receive a new PPI, a grace period of 60 days shall be granted to the holder.

Entities Issue Prepaid Payment Systems

All organizations involved in issuing closed system PPIs are exempt from the RBI’s guidelines and will not seek approval from Apex Bank. However, they need to meet the following conditions for the issuance of payment metals:

  1. The maximum cost of a closed PPI system will be Rs 5000 / -;
  2. These prepaid payments will not be used to purchase other prepaid payment tools;
  3. The amount collected under this scheme will be waived from the delivery of the delivery, provided that the remaining amount of payment instruments does not exceed the Rs 50 lakhs or 10% of the NOF (General Funds) of suppliers, whichever is less;
  4. Any business operating in the issuance of these prepayment payments needs to notify the RBI (Reserve Bank of India) when those plans come into effect;
  5. Those organizations also need to submit an annual financial statement to the State Bank representing the total amount and the remaining amount of instruments issued during that period.

Foreign Exchange Prepaid Payment Instruments

All entities authorized under the FEMA (Foreign Exchange Management Act), 1999 to issue prepaid foreign currencies are not subject to minimum monetary requirements. However, these payment instruments can only be used for the current account approval.

Mobile Prepaid Instrument

The conditions to be met for the release of prepaid steel from RBI guidelines are as follows:

  1. Except for the amount of talk time, the use of that prepaid device will be restricted to purchasing only those digital services or content that can be used on mobile phones.
  2. Mobile payment instruments may not be used for the purchase of other goods or services.
  3. These prepaid instruments cannot be converted into cash.
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Prepaid Wallet License

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